Condensed Consolidating Financials (Tables)

3 Months Ended

Mar. 31, 2016

Condensed Financial Information [Abstract]

Condensed Balance Sheet [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited, in thousands except share and per share data)

March 31, 2016
BALANCE SHEET	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
ASSETS
Cash and cash equivalents	$	36,637	$	4,536	$	201,582	$	—		$	242,755
Short-term investments	69,758		—		63		—			69,821
Accounts receivable, net	—		12,922		85,539		(132		)	98,329
Prepaid expenses and other current assets	6,556		1,977		14,023		(2,850		)	19,706
Deferred income taxes, current	—		—		—		—			—
Intercompany receivable	144,488		178,787		—		(323,275		)	—
Total current assets	257,439		198,222		301,207		(326,257		)	430,611
Long-term investments	81,896		—		—		—			81,896
Property and equipment, net	—		6,063		50,307		—			56,370
Trade names, net	—		10,091		114,663		—			124,754
Patent and patent licenses, net	—		708		16,636		—			17,344
Customer relationships, net	—		1,005		201,347		—			202,352
Goodwill	—		56,296		772,716		—			829,012
Other purchased intangibles, net	—		4,205		14,034		—			18,239
Investment in subsidiaries	1,091,470		1,127,997		2		(2,219,469		)	—
Deferred income taxes, non-current	—		25,105		2,176		(21,397		)	5,884
Other assets	—		162		5,210		—			5,372
Total assets	$	1,430,805	$	1,429,854	$	1,478,298	$	(2,567,123	)	$	1,771,834
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	8,042	$	21,664	$	53,239	$	(132	)	$	82,813
Income taxes payable	—		8,579		—		(2,850		)	5,729
Deferred revenue, current	—		19,848		59,127		—			78,975
Capital lease, current	—		—		198		—			198
Deferred income taxes, current	—		—		—		—			—
Intercompany payable	135,424		—		187,851		(323,275		)	—

Total current liabilities	143,466		50,091		300,415			(326,257		)	167,715
Long term debt	348,396		246,010		—			—			594,406
Capital lease, non-current	—		—		139			—			139
Liability for uncertain tax positions	—		37,658		—			—			37,658
Deferred income taxes, non-current	29,447		—		32,587			(21,397		)	40,637
Deferred revenue, non-current	—		3,888		1,800			—			5,688
Other long-term liabilities	1,450		737		15,360			—			17,547
Total liabilities	522,759		338,384		350,301			(347,654		)	863,790
Commitments and contingencies	—		—		—			—
Preferred stock - Series A, $0.01 par value	—		—		—			—			—
Preferred stock - Series B, $0.01 par value	—		—		—			—			—
Common stock, $0.01 par value	480		—		—			—			480
Additional paid-in capital - common	295,633		240,262		525,732			(765,994		)	295,633
Retained earnings	611,845		851,000		630,631			(1,453,475		)	640,001
Accumulated other comprehensive loss	88		208		(28,366		)	—			(28,070		)
Total stockholders' equity	908,046		1,091,470		1,127,997			(2,219,469		)	908,044
Total liabilities and stockholders' equity	$	1,430,805	$	1,429,854	$	1,478,298		$	(2,567,123	)	$	1,771,834

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEET

(Unaudited, in thousands except share and per share data)

December 31, 2015
BALANCE SHEET	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
ASSETS
Cash and cash equivalents	$	55,516	$	9,975	$	190,039		$	—		$	255,530
Short-term investments	79,595		—		60			—			79,655
Accounts receivable, net	—		10,679		104,131			(130		)	114,680
Prepaid expenses and other current assets	6,887		8,500		14,319			(3,984		)	25,722
Deferred income taxes, current	—		3,316		4,413			(511		)	7,218
Intercompany receivable	117,000		174,127		—			(291,127		)	—
Total current assets	258,998		206,597		312,962			(295,752		)	482,805
Long-term investments	78,563		—		—			—			78,563
Property and equipment, net	—		6,557		50,885			—			57,442
Trade names, net	—		10,118		108,847			—			118,965
Patent and patent licenses, net	—		743		18,098			—			18,841
Customer relationships, net	—		1,193		196,126			—			197,319
Goodwill	—		56,296		751,365			—			807,661
Other purchased intangibles, net	—		4,218		13,298			—			17,516
Investment in subsidiaries	1,051,927		1,095,155		—			(2,147,082		)	—
Deferred income taxes, non-current	—		14,978		(14,978		)	—			—
Other assets	8,219		1,167		4,370			(9,149		)	4,607
Total assets	$	1,397,707	$	1,397,022	$	1,440,973		$	(2,451,983	)	$	1,783,719
LIABILITIES AND STOCKHOLDERS' EQUITY
Accounts payable and accrued expenses	$	4,573	$	27,976	$	81,965		$	(130	)	$	114,384
Income taxes payable	—		9,573		—			(3,984		)	5,589
Deferred revenue, current	—		19,530		56,574			—			76,104
Capital lease, current	—		—		214			—			214
Deferred income taxes, current	511		—		363			(511		)	363
Intercompany payable	121,263		—		169,864			(291,127		)	—
Total current liabilities	126,347		57,079		308,980			(295,752		)	196,654
Long term debt	354,437		246,749		—			(9,149		)	592,037

Capital lease, non-current	—		—		148			—			148
Liability for uncertain tax positions	—		35,917		—			—			35,917
Deferred income taxes, non-current	24,936		—		19,053			—			43,989
Deferred revenue, non-current	—		4,667		1,871			—			6,538
Other long-term liabilities	1,779		683		15,766			—			18,228
Total liabilities	507,499		345,095		345,818			(304,901		)	893,511
Commitments and contingencies	—		—		—			—
Preferred stock - Series A, $0.01 par value	—		—		—			—			—
Preferred stock - Series B, $0.01 par value	—		—		—			—			—
Common stock, $0.01 par value	479		—		—			—			479
Additional paid-in capital	292,064		238,631		524,031			(762,662		)	292,064
Retained earnings	595,216		813,058		602,935			(1,384,420		)	626,789
Accumulated other comprehensive loss	2,449		238		(31,811		)	—			(29,124		)
Total stockholders' equity	890,208		1,051,927		1,095,155			(2,147,082		)	890,208
Total liabilities and stockholders' equity	$	1,397,707	$	1,397,022	$	1,440,973		$	(2,451,983	)	$	1,783,719

Condensed Income Statement [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(Unaudited, in thousands except share and per share data)

Three Months Ended March 31, 2016
	j2 Global, Inc.			j2 Cloud Services, Inc			Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	56,385		$	155,566	$	(11,449	)	$	200,502
Cost of revenues	—			17,489			28,202		(11,403		)	34,288
Gross profit	—			38,896			127,364		(46		)	166,214
Operating expenses:
Sales and marketing	—			10,628			37,530		(46		)	48,112
Research, development and engineering	—			3,289			5,699		—			8,988
General and administrative	4,672			5,471			45,633		—			55,776
Total operating expenses	4,672			19,388			88,862		(46		)	112,876
Income (loss) from operations	(4,672		)	19,508			38,502		—			53,338
Equity earnings in subsidiaries	34,323			27,696			—		(62,019		)	—
Interest expense, net	1,871			5,233			3,129		—			10,233
Other expense (income), net	91			(920		)	955		—			126
Income before income taxes	27,689			42,891			34,418		(62,019		)	42,979
Income tax expense (benefit)	(2,254		)	8,568			6,722		—			13,036
Net income	$	29,943		$	34,323		$	27,696	$	(62,019	)	$	29,943

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF INCOME

(Unaudited, in thousands except share and per share data)

Three Months Ended March 31, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Revenues:
Total revenues	$	—		$	54,619	$	116,435		$	(9,801	)	$	161,253
Cost of revenues	—			15,528		22,394			(9,736		)	28,186
Gross profit	—			39,091		94,041			(65		)	133,067
Operating expenses:
Sales and marketing	—			9,780		27,875			(65		)	37,590
Research, development and engineering	—			3,855		4,592			—			8,447
General and administrative	4,179			6,850		35,471			—			46,500
Total operating expenses	4,179			20,485		67,938			(65		)	92,537
Income (loss) from operations	(4,179		)	18,606		26,103			—			40,530
Equity earnings in subsidiaries	26,251			23,539		—			(49,790		)	—
Interest expense, net	2,588			5,107		2,618			—			10,313
Other expense (income), net	(12		)	339		(1,111		)	—			(784		)
Income before income taxes	19,496			36,699		24,596			(49,790		)	31,001
Income tax expense (benefit)	(2,381		)	10,448		1,057			—			9,124
Net income	$	21,877		$	26,251	$	23,539		$	(49,790	)	$	21,877

Condensed Comprehensive Income Statement [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited, in thousands except share and per share data)

Three Months Ended March 31, 2016
	j2 Global, Inc.			j2 Cloud Services, Inc.		Non-guarantor Subsidiaries		Consolidating Adjustments			j2 Global Consolidated
Net income	$	29,943		$	34,323	$	27,696	$	(62,019	)	$	29,943
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax expense	—			—		3,415		—			3,415
Unrealized loss on available-for-sale investments, net of tax benefit	(2,361		)	—		—		—			(2,361		)
Other comprehensive income (loss), net of tax	(2,361		)	—		3,415		—			1,054
Comprehensive income	$	27,582		$	34,323	$	31,111	$	(62,019	)	$	30,997

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(Unaudited, in thousands except share and per share data)

Three Months Ended March 31, 2015
	j2 Global, Inc.		j2 Cloud Services, Inc.		Non-guarantor Subsidiaries			Consolidating Adjustments			j2 Global Consolidated
Net income	$	21,877	$	26,251	$	23,539		$	(49,790	)	$	21,877
Other comprehensive income (loss), net of tax:
Foreign currency translation adjustment, net of tax benefit	—		—		(15,237		)	—			(15,237		)
Unrealized gain on available-for-sale investments, net of tax expense	311		69		—			—			380
Other comprehensive income (loss), net of tax	311		69		(15,237		)	—			(14,857		)
Comprehensive income	$	22,188	$	26,320	$	8,302		$	(49,790	)	$	7,020

Condensed Cash Flow Statement [Table Text Block]

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(Unaudited, in thousands except share and per share data)

Three Months Ended March 31, 2016
	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments		j2 Global Consolidated
Net cash (used in) provided by operating activities	$	5,686		$	(450	)	$	59,288		$	—	$	64,524
Cash flows from investing activities:
Maturity of available-for-sale investments	26,224			—			—			—		26,224
Purchase of available-for-sale investments	(21,402		)	—			—			—		(21,402		)
Purchases of property and equipment	—			(284		)	(4,037		)	—		(4,321		)
Acquisition of businesses, net of cash received	—			—			(47,989		)	—		(47,989		)
Purchases of intangible assets	—			—			(316		)	—		(316		)
Net cash (used in) provided by investing activities	4,822			(284		)	(52,342		)	—		(47,804		)
Cash flows from financing activities:
Repurchases of common and restricted stock	(1,786		)	—			—			—		(1,786		)
Issuance of common stock under employee stock purchase plan	58			—			—			—		58
Exercise of stock options	1,312			—			—			—		1,312
Dividends paid	(15,817		)	—			—			—		(15,817		)
Excess tax benefits from share-based compensation	264			—			—			—		264
Deferred payments for acquisitions	—			(528		)	(13,858		)	—		(14,386		)
Other	—			—			(25		)	—		(25		)
Intercompany	(13,327		)	(4,147		)	17,474			—		—
Net cash (used in) provided by financing activities	(29,296		)	(4,675		)	3,591			—		(30,380		)
Effect of exchange rate changes on cash and cash equivalents	(91		)	(30		)	1,006			—		885
Net change in cash and cash equivalents	(18,879		)	(5,439		)	11,543			—		(12,775		)
Cash and cash equivalents at beginning of period	55,516			9,975			190,039			—		255,530
Cash and cash equivalents at end of period	$	36,637		$	4,536		$	201,582		$	—	$	242,755

j2 GLOBAL, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENT OF CASH FLOW

(Unaudited, in thousands except share and per share data)

Three Months Ended March 31, 2015
	j2 Global, Inc.			j2 Cloud Services, Inc.			Non-guarantor Subsidiaries			Consolidating Adjustments		j2 Global Consolidated
Net cash provided by operating activities	$	(8,106	)	$	6,745		$	47,077		$	—	$	45,716
Cash flows from investing activities:
Maturity of available-for-sale investments	21,994			7,000			—			—		28,994
Purchase of available-for-sale investments	(13,276		)	(6,543		)	—			—		(19,819		)
Purchases of property and equipment	—			(308		)	(2,648		)	—		(2,956		)
Acquisition of businesses, net of cash received	—			1,459			(73,674		)	—		(72,215		)
Purchases of intangible assets	—			(5		)	(322		)	—		(327		)
Net cash (used in) provided by investing activities	8,718			1,603			(76,644		)	—		(66,323		)
Cash flows from financing activities:
Repurchases of common stock and restricted stock	(705		)	—			—			—		(705		)
Issuance of common stock under employee stock purchase plan	61			—			—			—		61
Exercise of stock options	65			—			—			—		65
Dividends paid	(14,110		)	—			—			—		(14,110		)
Excess tax benefits from share-based compensation	334			—			—			—		334
Deferred payments for acquisitions	—			(544		)	(1,812		)	—		(2,356		)
Other	—			—			(50		)	—		(50		)
Intercompany	(13,232		)	(27,098		)	40,330			—		—
Net cash (used in) provided by financing activities	(27,587		)	(27,642		)	38,468			—		(16,761		)
Effect of exchange rate changes on cash and cash equivalents	—			—			(4,278		)	—		(4,278		)
Net change in cash and cash equivalents	(26,975		)	(19,294		)	4,623			—		(41,646		)
Cash and cash equivalents at beginning of period	226,790			36,810			170,063			—		433,663
Cash and cash equivalents at end of period	$	199,815		$	17,516		$	174,686		$	—	$	392,017